Glossary

• Accelerated death benefit: This is a rider attached to a life insurance policy which will allow for early access to life insurance policy benefits if you contract a terminal illness. However much of the policy benefit that is used before death will decrease the total death benefit.
• Accidental death benefit rider: This is a rider added to a life insurance policy that will provided an additional payment in addition to other benefits if a death happens as the result of an accident.
• Beneficiary: The beneficiary is the person who is designated as eligible to receive benefits from a life insurance policy. The beneficiary is named by the policy owner, usually when the plan is started, but may be updated and changed at any time.
• Certificate of insurance:A certificate of insurance provides proof of insurance coverage. Usually this is required in order to receive certain benefits from other businesses, or it may be required in order to get hired on at certain jobs, (such as proof of liability insurance for a driving job).
• Death benefit: This is how much will be paid to the named beneficiaries upon the death of the insured person.
• Dependent coverage: Name given to insurance that is extended to the dependent spouse and children (if any) of an insured individual.
• Human Life Value: This is a calculation of value based upon a person's earnings, life history, living conditions and other factors that expressed in a dollar amount.
• Limitation and exclusions: These are the conditions or situations that will not be covered under a given policy, such as suicide for most life insurance policies.
• Pre-existing condition: This refers to medical conditions that existed prior to coverage beginning on a medical or life insurance policy.
• Rider: This is usually a provision or addition to an insurance policy that provides additional benefits or coverage for another person (such as a rider on an adult's life insurance policy also providing coverage for their child).
• Term life Insurance: Term life insurance is only in effect for a specific period of time and expires at the end of that time period. At that point the insurance must be renewed (usually at a higher rate) in order for life insurance coverage to continue.
• Underwriter: An underwriter is a person who is trained at evaluating the risks for issuing a policy or loan.